By Pension and Benefits Editorial Staff
The IRS has updated its procedures for employee plans (EP) to obtain guidance on issues under the jurisdiction of the Commissioner, Tax Exempt and Government Entities Division (TE/GE) Employee Plans Rulings and Agreements Office. The procedure also details the types of advice available to taxpayers, and the manner in which such advice is requested and provided.
In addition to minor non-substantive changes, including changes to dates, cross references, and citations to other revenue procedures, the following changes are made:
- Modifications have been made to reflect Employee Plans Rulings and Agreement’s current practice of considering voluntary requests for closing agreements to resolve certain income or excise tax issues that are ineligible for resolution under EPCRS.
- Letter ruling requests may not be submitted via facsimile transmission.
- A new category “"Other Circumstances,” for which determination letters can be requested has been added.
- Code Secs. 414(b), (c) and (m) have been added to the list of sections for which a determination is not made when a determination letter is issued in accordance with this revenue procedure.
- For a plan to be reviewed for, and a determination letter relied upon with respect to, whether the terms of the plan satisfy one of the design-based safe harbors, the plan document must provide a definition of compensation that satisfies Reg. §1.414(s)-1(c).
- Employee Plans Rulings and Agreements will consider a request for an extension of time for making an election under Reg. §301.9100-3 of the Procedure and Administration Regulations to recharacterize annual contributions made to a Roth IRA. Employee Plans Rulings and Agreements will also consider recharacterization requests that relate to a conversion or rollover contribution to a Roth IRA but only if the rollover or conversion was made prior to January 1, 2018.
- SB/SE Exam will be notified if a request for an extension of time for making an election or other application for relief under Reg. §301.9100-3 is submitted when the return is under examination.
- Beginning April 1, 2019, VCP submissions and the applicable user fees must be made using www.pay.gov. Further, the payment of user fees for pre-approved plan submissions and letter ruling requests may not be made using www.pay.gov and such requests must still be accompanied by a check in the amount of the applicable user fee.
- Clarification has been provided regarding which forms must be submitted for VCP submissions made prior to April 1, 2019.
- The user fee for Form 5310 will increase from $2,300 to $3,000 for submissions postmarked on or after July 1, 2019.
Rev. Proc. 2019-4 is effective January 2, 2019.
SOURCE: Rev. Proc. 2019-4.
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